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Overall, 61% of Americans now say they are living paycheck to paycheck, according to a recent report.
Aside from income, where you live is the most important factor in determining whether you are stretched too thin.
City dwellers are much more likely to feel financially strained.

Even as inflation cools, consumers still show signs of strain.
As of April, the share of adults feeling stretched too thin held nearly steady at 61%, according to a new LendingClub report.

However, high-income earners are increasingly under pressure, LendingClub found. Of those earning more than six figures, 49% reported living paycheck to paycheck, a jump from last year’s 42%. 
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Alternatively, the percentage of those earning less than $100,000 who reported living paycheck to paycheck remained steady or fell over the same period — moving slightly to 63% from 64% of those earning $50,000 to $100,000, and dropping to 73% from 80% of those earning less than $50,000.

Where you live determines your financial standing

Depending on where you live, a $100,000 income may not stretch that far, according to Anuj Nayar, LendingClub’s financial health officer.
A separate report by SmartAsset analyzed how far six figures will go in America’s 25 largest cities. In New York, for example, $100,000 amounts to just $35,791 after accounting for taxes and the high cost of living. 

In contrast, a six-figure salary is worth much more in Memphis — roughly the equivalent of $86,444 due to a lower cost of living and no state income tax. Here’s a breakdown of how much you need to earn to afford to live in the country’s most popular cities.

Colorful cafe bars at the iconic Beale Street music and entertainment district of downtown Memphis, Tennessee.
benedek | iStock | Getty Images

In general, 69% of city dwellers live paycheck to paycheck, 25% more than their suburban counterparts, LendingClub found.
“While income is obviously a major factor, where you live appears to be almost equally important in factoring whether a consumer is living paycheck to paycheck,” Nayar said.
Along with surging mortgage rates and home prices, rents are still higher in many cities across the country, according to the latest data from rental listings site Rent.com. 

As of last month, 29 of the 50 most populous U.S. cities notched year-over-year rent increases, Rent.com found.
Compared with two years ago, rents have jumped more than 16% — that’s the equivalent of a $275 increase in monthly rent bills, according to Jon Leckie, researcher for Rent.com.
“That kind of growth over such a short period of time is going to put a lot of pressure on pocket books.”

How to break the paycheck-to-paycheck cycle

High earners and urbanites are often susceptible to “lifestyle creep,” said CFP Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida. 
As consumers earn more, they spend more, she said, particularly on eating out or deliveries through DoorDash, as well as additional subscription services. It’s easy to “fall into the trap of too much convenience spending.”
To break the cycle, “the first thing to do is look at convenience spending and figure out ways to cut the spending that is not bringing them value,” said McClanahan, who also is a member of CNBC’s Advisor Council. 
“Immediately divert that money to savings to create an emergency fund.” Once you have three to six months of expenses set aside, “start saving more for other goals.”
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As the clock ticks to resolve the country’s debt ceiling issues, House Democrats on Tuesday moved to renew a Social Security reform proposal.
“This tactic of holding the economy hostage hurts seniors the most,” said Rep. John Larson, D-Conn., of the debt ceiling drama.
Larson also re-upped his bill to expand Social Security benefits through higher taxes on the wealthy.

Rep. John Larson, D-Conn., leaves the Capitol after the final votes of the week on Feb. 28, 2019.
Bill Clark | CQ-Roll Call Group | Getty Images

At the Tuesday event, House Minority Leader Hakeem Jefferies, D-N.Y., called it “dangerous default gamesmanship” that could put benefits for millions of retirees across the nation at risk.

Social Security already faces funding risks

In order to prevent a Social Security funding shortfall, congressional Democrats and Republicans must agree on a solution.
The latest projections from the Social Security Board of Trustees show the trust fund used to pay retirees, as well as their family and survivors, will be depleted 10 years from now. At that point, 77% of those benefits will be payable.
When combined with the trust fund used to pay disability benefits, the funds are projected to be depleted in 2034, when 80% of benefits would be payable.
The Social Security 2100 Act that was introduced in the last Congress had broad support among House Democrats.

This tactic of holding the economy hostage hurts seniors the most.

John Larson
Democratic Representative from Connecticut

The latest version of the bill will be sponsored by Democratic Sens. Richard Blumenthal of Connecticut and Chris Van Hollen of Maryland, Larson said.
Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., reintroduced their own Social Security proposal earlier this year, which similarly aims to increase benefits while extending the program’s solvency through taxes on the wealthy.
To date, Republican lawmakers have not proposed legislation to address Social Security’s funding woes. Sen. Bill Cassidy, R-La., recently said he is working on a bipartisan “big idea” to address the program’s 75-year shortfall.
“That’s why we’re here, to implore our Republican colleagues to work with us, to sign on to our bill, or produce what they believe is a better plan,” Larson said.

Changes in the Social Security 2100 Act

zimmytws | iStock | Getty Images

The Social Security 2100 Act aims to extend the program’s solvency, though estimates are not yet available for how long it could prolong the program’s funding. The last version of the bill was expected to extend the program to 2038.
In contrast, the Sanders and Warren plan would extend the solvency through 2096.
A key difference between the two plans is how they affect higher taxes. The Sanders and Warren plan calls for reapplying Social Security payroll taxes for incomes of more than $250,000.
In contrast, Social Security 2100 would apply those taxes to earnings of more than $400,000, in keeping with President Joe Biden’s promise not to raise taxes for households with annual incomes below that threshold.
This year, the maximum earnings subject to Social Security payroll taxes is $160,200.

Social Security 2100 also calls for adding an additional 12.4% net investment income tax for taxpayers making more than $400,000.
In addition, the bill would introduce a host of expansions to benefits.
The Social Security 2100 Act would increase all benefits by 2% for the program’s more than 65 million beneficiaries.
It also seeks to make benefits more generous for elderly beneficiaries who have been receiving benefits for 15 years or more, as well as low-income seniors and widows and widowers from two-income households.
It would repeal rules that reduce benefits for some public workers and their spouses, known as the Windfall Elimination Provision and Government Pension Offset.

Congressman Larson offers a common sense, fair and forward-looking plan to ensure that the 88 year-strong promise of Social Security remains fulfilled.

Max Richtman
president and CEO of the National Committee to Preserve Social Security and Medicare

It would also increase access to benefits for children who live with grandparents or other relatives, as well as restore student benefits up to age 26 for children of beneficiaries.
The bill also calls for changing the way annual cost-of-living adjustments are measured, among other changes.
Social Security advocates praised the reintroduction of the bill.
“At a time when the House Majority has taken the country to the brink of default — which could have catastrophic consequences for seniors on fixed incomes — Congressman Larson offers a common sense, fair and forward-looking plan to ensure that the 88 year-strong promise of Social Security remains fulfilled,” Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, said in a statement. More

FA Playbook

Demand for annuities has been rising amid concerns about the economy and the possibility of a recession. 
Now, more than half of retirement savers are considering some type of guaranteed lifetime income, according to a recent report.
Money managers are rolling out new options to help workers reach retirement with a source of steady income for life.

Amid concerns about the U.S. economy and the possibility of a recession, most retirement savers want some sort of assurance they won’t outlive their nest eggs, recent reports show.
As a result, demand for annuities, which offer a guaranteed stream of monthly income like Social Security and pensions, has soared.

Now, more than half, or 54%, of retirement savers are considering a type of guaranteed lifetime income, according to a new survey by Morning Consult for the American Council of Life Insurers, or ACLI.

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Here’s a look at other stories impacting the financial advisor business.

“Retirement savers are clearly concerned about inflation and the overall economy,” said Susan Neely, ACLI’s president and CEO.

More retirement plans to offer annuity options

The passage of the Secure Act also made it easier for employers to offer annuities as one retirement savings plan option.
Going forward, insurance companies, asset managers and employers are moving toward making these guaranteed lifetime income options more broadly available through 401(k) and other defined contribution plans.
Starting in the fall, Fidelity will let plan participants convert some of their retirement savings into an immediate income annuity to provide pension-like payments throughout retirement.

Fidelity Investments is the nation’s largest provider of 401(k) plans. The financial services firm handles more than 35 million retirement accounts in total.
BlackRock and State Street Global Advisors, two of the largest asset managers, also announced target-date funds with retirement income annuity options.
“As Americans are living longer and healthier lives, their risk of outliving their savings is accelerating the ‘silent crisis’ of financial insecurity in retirement,” Mark McCombe, BlackRock’s chief client officer, said in a statement. 

Having an annuity option when you retire is a good thing.

Carolyn McClanahan
founder of Life Planning Partners

“Having an annuity option when you retire is a good thing for people who are not feeling confident,” said Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners, based in Jacksonville, Florida.
But with any annuity, make sure you are comparing the offerings and the fees, added McClanahan, who also is a member of CNBC’s Advisor Council. 

Annuity sales hit a record in 2023

Annuity sales hit an all-time high in the first quarter of 2023, up roughly 50% from a year ago, according to Limra, an insurance industry trade group.
The annuity market has benefited from market volatility, concerns about the banking sector and a potential recession, as well as higher interest rates, which generally translate to insurers paying a better return on investment, according to Todd Giesing, assistant vice president of LIMRA’s annuity research.

“Certainly annuity payouts are so much more attractive now,” said Keri Dogan, senior vice president of retirement solutions at Fidelity.
Dogan said she expects the interest in annuities will continue to grow “because you get so much more for your money.” More

Venmo on Monday unveiled a new teen account that allows parents to open a linked Venmo account for teenagers ages 13 to 17 years old.
A consumer watchdog shares how to protect teams from common peer-to-peer payment issues.

Maskot | Maskot | Getty Images

As new peer-to-peer payment app options emerge for teenagers, experts say it’s an opportunity for parents to teach their kids how to use these financial tools wisely — and educate them on how to avoid common pitfalls.
Venmo on Monday unveiled a new teen account that allows parents to open a linked account with select features for teenagers ages 13 to 17 years old. While some teenagers already use Venmo, individual accountholders must be at least 18 years old (or the age of majority in their state), per the app’s user agreement.

This isn’t the first peer-to-peer payment app to expand to teen users. Cash App, Square Cash and Apple Wallet also offer features for teens, albeit with parental supervision. PayPal, parent company of Venmo, still requires users to be at least 18 years old (or the age of majority in their state).
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The Venmo teen account includes a debit card and can be funded by a parent’s Venmo account through any linked sources. Parents can monitor their teen’s payments and friend requests, as well as control privacy settings.
“We have a zero-tolerance policy on our platform for attempted fraudulent activity, and our teams work tirelessly to protect our customers,” a PayPal spokesperson told CNBC. “We encourage customers to always be vigilant online and to contact customer service directly if they suspect they are a target of a scam.”

Apps are ‘convenient,’ but woes can be ‘difficult to fix’

Peer-to-peer payment apps, also known as P2P apps, are widely used throughout the U.S., used by 64% of adults, including 81% of those ages 18 to 29 years old, according to a 2022 report from Consumer Reports.

Teresa Murray, a consumer watchdog at the U.S. Public Interest Research Group, urges caution when using P2P apps. “There are real consequences if something goes wrong,” she said.
U.S. PIRG examined nearly 9,300 complaints received by the Consumer Financial Protection Bureau between April 2017 and April 2021, and uncovered a pattern of issues among several P2P apps with digital wallets, scams and customer service.

“People use these P2P apps because they’re convenient and they’re easy,” Murray said. “But it’s very inconvenient when something goes wrong.”
Nearly one-quarter of users have reported sending money to the wrong person, a 2022 survey from LendingTree found.
“It’s difficult to fix it, and people just don’t realize that up front,” she added.

Protecting teens from common P2P payment issues 

Whether your teen is using Venmo or another P2P app, Murray said it’s important for both parent and child to be familiar with the possible risks.
For example, she suggests that users fund P2P accounts with a credit card rather than a checking account because there a greater protections under the Truth In Lending Act and Fair Credit Billing Act if something goes wrong. And if you do link to your bank account or a teen’s, keep the majority of your cash elsewhere.

Murray also suggests only paying “people you know well” via P2P apps and asking them to send you a request via the app before making a payment for the first time. “Once you have completed a transaction, it’s done,” she warned. “You’re not getting your money back.”
Teens should also make transactions private, add extra authentication to access the app from their phone, and be vigilant when sharing their device with others, she said. They may also thwart scammers by never sharing authentication codes with anyone.

Talk to your teens about money 

As your teen learns about budgeting and payment apps, experts urge parents to discuss these topics at home.
“The best tip I can offer is to keep that communication going with your teen about money,” said certified financial planner Desiree Kaul at Main Street Planning in Satellite Beach, Florida. “As long as your child feels comfortable asking you questions, they will always have someone to turn to when they want an answer.”  More

A certificate of deposit ladder, or CD ladder, can capture higher yields amid interest rate uncertainty.
Typically, a CD ladder involves splitting equal amounts of cash among multiple CDs with different maturity dates.
However, a diversified portfolio is still essential for long-term investing goals, financial experts say.

Monthirayodtiwong | Istock | Getty Images

If you’re boosting your emergency fund or saving for a short-term goal, a certificate of deposit ladder, or CD ladder, may help you capture higher yields amid interest rate uncertainty.
After a series of interest rate hikes from the Federal Reserve, options for cash, such as high-yield savings, Treasury bills and money market funds have become more competitive.

However, experts say a CD ladder may be worth considering as the Fed weighs an interest rate pause or more rate hikes.
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“It’s always a tried-and-true strategy,” said Ken Tumin, founder and editor of DepositAccounts.com, a website that tracks the most competitive options for savings. “You don’t have to worry about trying to guess where interest rates are headed.”
Typically, a CD ladder involves splitting equal amounts of cash among multiple CDs with different maturity dates. As the shorter terms expire, you can invest the proceeds into longer-maturity CDs.
“A CD ladder gives someone an opportunity to harvest a variety of yields over varying timelines,” said Bankrate senior economic analyst Mark Hamrick. “And if you’re searching for the highest yields, that can be quite rewarding.”

For example, investors may purchase five CDs, with maturities ranging from one to five years, freeing up 20% of their original investment every year.
Alternatively, you may build a ladder with shorter-term CDs, such as three-month to one-year terms, which provides more flexibility.
While shorter-term ladders offer faster access to cash without a penalty, the trade-off may be missing the opportunity to lock in higher rates for longer-term CDs, Tumin said.

A CD ladder gives someone an opportunity to harvest a variety of yields over varying timelines.

Mark Hamrick
Bankrate senior economic analyst

Of course, the decision ultimately hinges on your goals and how soon you’ll need access to the money, he said.

What to know about shorter-term CDs

Typically, investors can expect higher yields from longer-maturity CDs than from shorter-term CDs.
But currently, the opposite is true because of the inverted yield curve, with long-term government bonds paying lower yields than shorter-term bonds, Tumin said.
As of May 22, top one-year certificates of deposit were paying an average of 5.26%, according to DepositAccounts. These rates are the highest 1% average. By contrast, most five-year CDs are paying below 5% on average.

Investors still need a ‘diversified portfolio’

While CD rates have recently been higher, Hamrick pointed out that some still aren’t beating inflation.
Annual inflation rose by 4.9% in April, down slightly from 5% in March, the U.S. Bureau of Labor Statistics reported in May.
“Over the long-term, one needs to have a diversified portfolio, particularly when saving for retirement,” Hamrick said. More

A customer used an automated teller machine (ATM) at a Truist Bank branch in Dallas, Texas, US, on Friday, April 14, 2023.
Shelby Tauber | Bloomberg | Getty Images

The health care sector experienced rapid change over the past decade with the rise of digital services, bringing a range of opportunities to invest. 
TipRanks recognized Wall Street’s 10-best analysts in the space for identifying the best investment opportunities. These analysts outdid their peers with their stock picking and generated noteworthy returns through their recommendations.

TipRanks leveraged its Experts Center tool to recognize the ones with a high success rate. We also analyzed each stock recommendation made by health care sector analysts in the past decade. 
The ranking shows the analysts’ ability to deliver returns from their recommendations. TipRanks’ algorithms calculated the statistical significance of each rating, average return and the analysts’ overall success rate. In addition, every rating was measured over one year.

Top 10 analysts from the healthcare sector

The image shows the most successful Wall Street analysts from the healthcare sector, in descending order.

Arrows pointing outwards

1. Thomas Smith – SVB Securities 

Thomas Smith tops the list. Smith has an overall success rate of 51%. His best rating has been on Viking Therapeutics (NASDAQ:VKTX), a clinical-stage biopharma company focusing on therapies for metabolic and endocrine disorders. His buy call on VKTX stock from April 27, 2022 to April 27, 2023 generated a stellar return of 791.30%.

2. Brandon Couillard – Jefferies 

Brandon Couillard is second on this list and has a success rate of 68%. Couillard’s top recommendation is Exact Sciences (NASDAQ:EXAS), a provider of cancer screening and diagnostic tests. The analyst generated a profit of 450% through his buy recommendation on Exact Sciences stock from May 4, 2016 to May 4, 2017. 

3. David Windley – Jefferies 

Jefferies analyst David Windley ranks No. 3 on the list. Windley has a success rate of 68%. His best recommendation has been on Medidata Solutions, a tech-based company with clinical expertise. Dassault Systemes later acquired Medidata. The analyst generated a turn of 175.70% through a buy recommendation on MDSO from Aug. 01, 2012 to Aug. 01, 2013.

4. John Eade – Argus Research 

John Eade bags the fourth spot on the list. The five-star analyst has a 69% overall success rate. Eade’s best recommendation has been on Moderna (NASDAQ:MRNA), a pharmaceutical and biotechnology company. His buy call on MRNA stock generated a 265.90% return from June 30, 2020 to June 30, 2021.

5. Michael Wiederhorn – Oppenheimer

Fifth-place analyst Michael Wiederhorn has a success rate of 66%. His best recommendation is Community Health Systems (NYSE:CYH), a company engaged in the management and operations of hospitals. The analyst delivered a profit on this stock of 298.2% from May 1, 2020 to May 1, 2021.

6. Charles Duncan – Cantor Fitzgerald

Taking the sixth position is Charles Duncan. The analyst has a success rate of 52%. His top recommendation was Novavax (NASDAQ:NVAX), a biotech company that develops vaccines. Through his buy call on NVAX stock, Duncan generated a solid return of 800% from March 17, 2020 to March 17, 2021.

7. Yaron Werber – TD Cowen

TD Cowen analyst Yaron Werber is seventh on this list, with a success rate of 65%. Werber’s best call has been a buy on the shares of Ultragenyx Pharmaceutical (NASDAQ:RARE), a biopharma company focusing on developing innovative medicines for rare and ultrarare diseases. The recommendation generated a return of 267.50% from Dec. 18, 2019 to Dec. 18, 2020.

8. Geulah Livshits – Chardan Capital

In the eighth position is Geulah Livshits of Chardan Capital. Livshits has an overall success rate of 42%. The analyst’s top recommendation is Cabaletta Bio (NASDAQ:CABA), a clinical-stage biotech company focused on developing therapies for autoimmune diseases. Based on her buy call on CABA, the analyst generated a profit of 800% from Oct. 11, 2022 through now. 

9. Richard Newitter – Truist Financial

Richard Newitter ranks ninth on the list. The five-star analyst sports a 62% success rate. His top recommendation has been on Organogenesis (NASDAQ:ORGO), a regenerative medicine company providing products for advanced wound care and surgical biologics. The buy recommendation generated a return of 397.9% from May 12, 2020 to May 12, 2021.

10. Boris Peaker – TD Cowen

Boris Peaker has the 10th spot on the list, with a success rate of 47%. Peaker’s best call has been a buy on shares of Trillium Therapeutics, a clinical-stage company developing therapies for cancer treatment. Pfizer (NYSE:PFE) later acquired Trillium. The recommendation generated a return of 800% from Jan. 7, 2020 to Jan. 7, 2021.

Bottom Line

Investors could follow the recommendations of top analysts to form a well-informed investment decision. You can also look at all the analysts who made it to the top 100 list. We will soon return with the top 10 analysts of the past 10 years from the Consumer Goods sector. More

Getting married is a major commitment. Going to the wedding as a guest is its own financial obligation.
As more couples choose to go all out, guests are spending more than $600, on average, on travel and accommodations, gifts and special-occasion attire and preparation, according to a recent report.
How much you spend should have less to do with what kind of wedding you are attending and more to do with your own budget and feelings about the couple, one expert said.

Marc Debnam | Getty Images

Weddings are expensive, and not just for the bride and groom.
As more couples choose to go all out on their nuptials, the average guest will spend $611 on travel and accommodations, gifts and special-occasion attire and preparation this year, according to a recent report by Bankrate.com. Wedding gifts alone average $180.

“Like just about everything else, inflation and higher interest rates are taking a toll on wedding attendees,” said Ted Rossman, Bankrate’s senior industry analyst.
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At a time when many households are already stretched thin, every “yes” RSVP poses a potential financial strain.
About 21% of wedding guests feel pressured to spend more than they comfortably are able to, and 18% must lean on credit cards just to attend, Bankrate found.
According to a separate survey by LendingTree, 40% of those who attended a wedding in the past five years have taken on debt to cover the cost.

For members of the wedding party, it’s even costlier: Nearly two-thirds, or 62%, have spent more than they could afford to celebrate with the bride and groom, and 32% went at least $500 in the red, LendingTree found.

How to say ‘I don’t’ to spending too much

There is no rule of thumb for how much you have to spend on someone else’s wedding, according to Esther Lee, deputy editor and wedding expert at The Knot.
The amount you give should have less to do with what kind of wedding you are attending, and more to do with your own budget and feelings about the couple, she said.
“Determining how generous you choose to be often correlates to your closeness with the couple,” she said. If you’re lifelong best friends, you may want to give a big gift; alternatively, make a contribution to their honeymoon fund, which will be meaningful, Lee advised.

“These are life moments and decision-making factors that no calculator can solve,” she said. 
In any case, determine how much you’re willing to spend and set boundaries to preserve your financial goals. Here are Lee’s top tips for any wedding guest on a budget:

Start a savings fund well in advance. “The more time everyone has to prepare, the better the outcome.”
Track travel prices. Starting early also applies to booking hotels and airfare for destination weddings and bachelorette or bachelor parties. If the group is slow to get organized, “offer to pick up the responsibilities by monitoring accommodation options and flights.”
Remember: Sometimes, you have to say no. If the math just doesn’t add up, there are gracious ways to thank the couple and decline. “Consider throwing the bride-to-be or your friend a celebratory brunch to relay your support.”

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Graduating from college is a major milestone for young adults.
Many new college grads don’t become financially independent until years later.
For parents, supporting grown children can be a substantial drain at a time when their own financial security is in jeopardy.

More than four million new college graduates will head out into the world this month, but it could be years before they pay their own way.
Most people feel like a grown-up by the time they’re 18, and certainly once they have a college degree, but many young adults do not become financially independent until they are well into their 20s.

While older generations are more likely to think their kids should be completely financially independent by the time they turn 21, young adults say that’s a good age to start paying some of their own expenses, such as credit card bills and travel costs, although they believe covering health insurance, student loan bills or rent should come even later, according to a report by Bankrate.com.
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“There’s definitely a disconnect between parents and adult children,” said Ted Rossman, Bankrate’s senior industry analyst.

Young adults face financial challenges

In part, millennials and Gen Z face financial challenges their parents did not as young adults. On top of carrying larger student loan balances, their wages are lower than their parents’ earnings when they were in their 20s and 30s.
Inflation has made it even harder for those trying to achieve financial independence. Soaring food and housing costs pose additional hurdles for young adults just starting out.

Now, 68% of parents with children over the age of 18 are making a financial sacrifice to help support them, according to Bankrate’s report.

Parents are sacrificing their own financial health

From buying groceries to paying for cell phone plans or covering health and auto insurance, parents are spending more than $1,400 a month, on average, helping their adult children make ends meet, a separate report by Savings.com found.
For parents, however, supporting grown children can be a substantial drain at a time when their own financial security is in jeopardy. 
Paying those bills “can also put your own retirement and other financial goals at risk. You can get loans for a lot of things, but retirement isn’t one of them,” Rossman said.
About half of parents with adult children said support has come at the expense of their own emergency savings or ability to pay down debt, while slightly fewer said supporting their children has been detrimental to their retirement savings, Bankrate found.

Kids have to realize that the quid pro quo here is that they’re going to be expected to take care of their parents.

Laurence Kotlikoff
president of MaxiFi

“It’s hard to know exactly where to draw that line,” Rossman said. Make sure the assistance works within your budget and be clear about the parameters — at the very least, discuss it, he advised. “It might help to attach a specific dollar amount or timeframe.”
“Everybody is everyone else’s lifeboat when it comes to hitting an iceberg,” Laurence Kotlikoff, economics professor at Boston University and president of financial planning software firm MaxiFi, told CNBC recently.
However, “it has to go both ways,” Kotlikoff said. “Parents are providing a lot of support and the kids have to realize that the quid pro quo here is that they’re going to be expected to take care of their parents.”
Having an open dialogue can help, he added. “Once that conversation gets going, it can continue for the next 40 years.”
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